ASSET RECONSTRUCTION COMPANIES ( ARCs), created under Section 3 of the "Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002". acquire NPAs / Stressed Assets from Banks and FIs.
The role played by ARCs is crucial in cleaning up the Balance Sheets of Banks and also in reviving the Sick / Non-Performing Companies, through Restructuring, to "Turn- around" and operate profitably.
RBI, SEBI and the Companies Act, 1956, have set the Guidelines under which an ARC can operate.
14 March 2011
See:Section 3 (Registration of securitisation companies or reconstruction compnaies.-) of the THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002
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